The Restaurant: They just can’t help themselves with the temptation of the restaurant business. I can’t blame them as I am tempted myself but have always held back from getting involved. I have had some clients invest with friends, families and proven entrepreneurs but have never seen one work. Yes, the facts are that the majority of restaurants fail miserably. Furthermore, the ones that work are usually owner operated.
Although I have seen more successful formulas for financing restaurants lately it’s still a bad investment no matter how you look at. Well-known players are better off lending their name to a proven restaurateur on a royalty deal rather than put up their own cash.
The Vegas tables: NFL players are notoriously bad gamblers. They gamble at riverboats, Indian Reservation Casinos, Atlantis, the team plane and of course Vegas. Pro athletes don’t gamble frequently but when they do they go pretty big. NFL players may only get to the tables twice a year and it’s not uncommon to leave $50,000 or more behind in losses. The funny thing is they never really know how much they actually lost. One client told me they saw a well-known teammate lose $150,000 in 5 hours at the blackjack table. Ouch! Counting other costs such as the buddies, the rooms, the limos and the clubs it’s not uncommon for a player to have a $100,000 weekend. Come to think about it, a $15,000 weekend is too much. However, the guys do need to blow off some steam but when money comes easy to them it goes easy as well. Over the course of a ten-year career a few players could have gambled over $500,000 to $1,000,000 away. Monies they wish they had ten years after retiring.
I tell my players to go have fun but put a hard cap on what you are willing to lose, and if you hit that number, shut it down and walk away.
As the continued horror stories of bankruptcies of NFL players keep coming I will keep pointing out my insights on why this happens in hopes of educating young players on the trappings of being a young professional athlete.
Follow me on Twitter: @Jackbechta
DEC 10 Len Pasquarelli
With the way it looks in Washington, owner Daniel Snyder will soon be hiring his fifth head coach since buying the team.
DEC 09 Jason Cole
Are the Washington Redskins headed for yet another coaching change?
DEC 06 Joel Corry
An inside look at the three NFL teams with the most dead money.